Why is privacy important?
Privacy is no longer just a requirement of the authorities but the key to trust, competitiveness and sustainable value creation. Activities that seriously take privacy are more powerful in meeting with customers, governments and future digital challenges.
Privacy is a fundamental right, enshrined in both the Constitution and the EU Privacy Regulation (GDPR). According to Data Protection Authority is a prerequisite for good privacy in order to succeed in digitisation and to ensure that people will actually use digital services. Without prejudice to the responsible processing of personal data, businesses are at risk of both lower user satisfaction and reduced reputation.
Using privacy strategically gives more benefits:
- Strengthened customer trust and loyalty: Transparency about data processing and good practices build trust and increase customer loyalty
- Reduced risk: Clear procedures and good documentation minimise the risk of data leaks, legal disputes and reputation damage.
- Effective operation: Structured processing of personal data provides better overview and less unnecessary data processing.
- Attractiveness in the market: good data protection practices can be crucial in tenders, contract negotiations and partnerships.
That's how you become a compliant, building competitiveness
Data Protection Authority and EU guides recommend the following concrete actions for businesses that will ensure responsible and value-added privacy.
- Map the data flow: Get an overview of what personal data you collect, why, where they are stored and who has access. This gives control and reduces the risk of errors.
- Update the Privacy Statement: Make sure that the statement is easy to find, easy to understand and provides answers to the most common questions. Avoid law language, write for most people.
- Train employees: Privacy is not just IT, it is culture. Train all employees in what is applicable and why it is important.
- Build privacy in the processes: Think about privacy from start when you develop new services or use new technologies. This is called ‘inbuilt privacy’ and is a requirement of GDPR (Lovdata).
- Have procedures for deletion and access management: Delete data that is no longer needed and ensure that only those who need access to personal data actually do.
- All documents: The business must be able to prove that they are in compliance with the law. This applies both to technical and organisational measures.
New requirements: GDPR 2.0 and the KIC Regulation
GDPR 2.0 is on the way, with the aim of simplifying the regulatory framework for small and medium-sized enterprises and adapting it to the development of artificial intelligence. Expected changes include:
- Simplified requirements for SMEs (including minor documentation obligations)
- New guidelines for the use of artificial intelligence and automated decisions
- Clearer consent and data minimisation framework
- Enhanced enforcement and faster cross-border procedures (EU Commission).
- The AI Act sets out its own requirements for enterprises developing or using artificial intelligence. The regulatory framework is based on a risk-based approach, the higher the risk posed by a KI system, the more stringent the requirements.
ECommunications Act: More stringent requirements for safety and consent
The new Ecomment Act, which entered into force on 1 January. January 2025, strengthens the requirements of security and privacy for all establishments providing electronic communications and data centre services. Key changes include:
- More stringent consent requirements for the use of cookies and tracking. Consent must be active, voluntary, specific and verifiable.
- Extended scope to also apply to OTT services (such as chat, chat over IP, e-mail)
- Data centres must be registered and meet requirements of adequate security and preparedness.
- Enhanced consumer rights and transparency (Emerging).
▪ Want to know more how your activities can use privacy as a competitive advantage? Checkout the instructions from Data Protection Authority, Law data, Nkom and the European Commission for concrete advice and updates.
The blog post is written with support from ChatGPT (art intelligence).